Generally,which of the Following Is NOT True of an Option

question 17

Multiple Choice

Generally,which of the following is NOT true of an option contract?

• A) An option contract allows the developer to perform a preliminary market study and feasibility analysis
• B) If the developer decides to purchase a property,the price of an option is applied towards the price of the property
• C) If the developer decides not to purchase the property,the landowner will refund any money paid for the option
• D) An option contract provides the developer with the assurance that a property will not be sold over the course of the option period

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Definitions:

Total Stockholders' Equity

The total amount of funds contributed by shareholders and retained earnings within a company.

Total Liabilities

The total of all financial obligations owed by a business to creditors, including loans, accounts payable, and other debts.

Retained Earnings

The portion of a company's profits that are not distributed as dividends to shareholders but are kept by the company for reinvestment.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.